There is a commercial that asks the question 'what is in your wallet?' This question can also be asked: How many credit cards is too many? There is no clear answer on this question. When you sit down and do your monthly budget what percentage of your income is taken away by credit card payments. If you spend more than a half of your budget on debts, it might me too much.
There are other downfalls to having too many credit cards. Every time you apply for a credit card, you lose 20 points of your credit score, no matter if you got approved or rejected. And you will gain these points back only several months later. Needless to say that your credit score is very important in terms of getting good interest rate for your future purchases like house or car. If you are a young person just starting out be careful with the credit cards. Trust me when I say you are going to have to use that same credit history all your life and destroying it when you are young can lead you into a life of debt and heartache.
Many credit cards now require you to have a personal identification number (PIN). Having many cards can be confusing unless you have the same pin for each one which is not recommended. Having too many credit cards can be confusing because you may not remember all your PIN's.
But there is one positive point in having many credit cards: you have a lot of 'available credit'. This parameter is being used when calculating your credit score. In the eyes of the banks, more credit is available for you - better. But it's important not to use all available credit more than 50%. Be careful.
Statistics say that average American has 8-10 credit cards. All these cards could lead to serious problems. Many credit card companies offer service of credit card consolidation, when you pay only one bill for all you cards. Well, taking this route can be a good idea as long as you cut up the ones you pay off and don't take them and go on a shopping spree maxing them out again. Many credit cards offer introductory rates for the short period of time. Then after the introductory period is over then you have a credit card you can't handle. Then you end up missing payments then are charged late payment fees and whatever other fee the credit card company wants to charge. Also making a payment late can hurt your credit score which is not an option if you want to be able to make future purchases.
Credit cards can be a great thing to have. Many things that we do these days require a credit card, but having a credit card also comes with a great sense of responsibility. Having too many credit cards can be confusing and you may loose track of your expenses. Then we have trouble making the payments which leads to additional charges. My opinion is that if you are going to have a credit card, make it only one or two and make sure you only spend what you are going to be able to pay off as soon as you get the bill.
